Reckitt raises its sights for growth

HOUSEHOLD goods group Reckitt Benckiser has raised its growth targets after a stronger-than-expected second-quarter performance, with growth once again being driven by new products such as Harpic Ready Brush and Airwick Aroma Oils.

Net profits for the second quarter rose 10%, to £129m, taking the figure for the half-year to end-June up 18% to £234m. Second-quarter turnover grew 1% to £953m, boosting the first-half figure to £1.87bn, an increase of 5%.

Shares in the group added 25p to 1490p, as chief executive Bart Becht said the half-time dividend payment is being raised by 14% to 16p and that the group is also adding another £50m to its share buyback programme, making it £300m this year.

Reckitt, the world's biggest maker of household cleaning products, with brands ranging from Mr Sheen to Dettol and Harpic, said it had enjoyed good growth in all divisions.

Second-half product launches will include a portable, battery-operated air freshener.

The group is raising its year-end growth targets from 5% in net revenues and low double digit in net income to 7%-plus and 18%-plus respectively.